Directorate for Public Governance

Infrastructure: make sure the asset performs throughout its life

 

OECD Framework for the Governance of Infrastructure

9. MAKE SURE THE ASSET PERFORMS THROUGHOUT ITS LIFE

Ensure a focus on the performance of the asset throughout its lifespan by putting in place monitoring systems and institutions.

 

WHY IS IT IMPORTANT?

  • It can be difficult to oversee the performance of infrastructure service delivery thereby maintaining value for money through the performance of the asset.

  • The establishment of a regulator strengthens the public interest, makes service providers more accountable, and enables an independent price-setting process;

  • Some have responded by enhancing the skills of sectoral units and regulators and streamlining the role and availability of specialised advisers;

  • Others have set up dedicated units, especially in the field of PPPs, which are contract based, but increasingly with a broader remit of infrastructure in general.

  • Central agencies such as the Central Budget Authority, Supreme Audit Institution and regulatory authorities should play their part and retain the appropriate level of responsibility during the operational phase.

  • Special care should also be taken to ensure that value for money is maintained during renegotiation.

 

KEY POLICY QUESTIONS:

  • Is there a strategy for how performance of the asset throughout the life of the asset is to be ensured?

  • Are the line departments, sector regulators or Supreme Audit Institution responsible for monitoring asset performance?

  • Are there programs in place for training and empowering relevant institutions?

  • Do PPP/concession contracts state the required output and performance?
   

CENTRAL INFRASTRUCTURE BODIES FOCUS ON DEVELOPMENT BUT LESS ON MONITORING AND ASSESSMENT

 

BENCHMARK INDICATORS

  • Policy document for ensuring performance from assets regulated by agency (sector regulator) or by contract with line department or similar;

  • Strategy for re-negotiations;

  • Ex-post evaluation of value for money.

 

GETTING INFRASTRUCTURE RIGHT

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Overview of current practices in infrastructure governance and practical tools to help manage infrastructure.

 


>> OECD Framework for the Governance of Infrastructure


 

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